Product numbers on the mortgage market increased last week to the highest level seen since the COVID-19 pandemic struck the UK, according to new data from Mortgage Brain.

The mortgage technology expert revealed that last week saw product numbers grow by 3.3% to a new high of 9,033.

The total number of mortgage products on the market is now up by 21.7% on the lowest point seen during the crisis, in the week ending 12 April, although Mortgage Brain noted that it remains down on the levels seen before the pandemic, standing at 38.4% lower than the nine-week average to 16 March.
 
Elsewhere, Mortgage Brain also reported that the volume of ESIS generated by its sourcing systems increased marginally over the week, by 2.3%. This was the eighth consecutive week of ESIS growth, with volumes now only 6.45% down on the nine-week average to 16 March.

Mortgage Brain CEO, Mark Lofthouse, commented: “There is clear comfort to be taken in these figures. For three weeks in a row ESIS volumes have remained at levels close to those seen before the pandemic, which suggests that the growing activity in the market is sustainable, and not simply the result of pent-up demand from would-be homebuyers and remortgagers who were forced to put their plans on hold by the lockdown.

“That should provide some encouragement not just for the weeks ahead, but for the rest of 2020 as a whole.”
 
Looking at the residential business mix, Mortgage Brain added that ESIS volumes had returned to pre-pandemic levels in all LTV bands up to 80%.

However, the mortgage technology expert stated that above 80% a shift has occurred lately, with ESIS volumes for products with an LTV of 80% to 85% increasing by 4.9% over the last two weeks, while those between 85% and 90% have dropped by 7.1%.

Furthermore, ESIS for products above 90% LTV represent just 1.1% of those generated, significantly down on the 6.6% proportion it represented before the pandemic.
 
“While the improvement in product numbers is also welcome, there is still much progress to be made,” Lofthouse continued.

“Though the market below 80% looks to be back on relatively stable footing, it’s evident that options are slim for those with a 15% deposit or smaller. A more substantial recovery will depend on lenders re-entering the market and offering a broader range of products, as well as more varied lending criteria.”

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